Revised guidelines on Industry Transport Discipline (June, 2008)

Preamble

In view of introduction of Security Locking System, Vehicle Tracking System 9VTS) Marketing
various changes that have taken place since last revision during June 2007, a __was felt to revise
the Industry Transport Discipline Guidelines for bulk petroleum products, Accordingly, a
committee comprising of the following members studied the issues it volved & revised the
industry Transport Discipline Guidelines to be implemented w.e.f June 2008.

Committee Members

Sl.No. Name Designation

1) Mr. R.K. Mehra (Convener) General Manager
2 Mr. A.K. Digar
3 Mr. Y.K. Gawati
(Logisitcs) Incharge,
Bharat Petroleum Corp
Ltd.,
Retail Head Quarter,
Mumbai
Genral Manager
9Operations)
Indian Oil Corp. Lte
Head Office, Mumbai
General Manager
(Operations & Distribution)
Hindustan Petroleum Corp
. Ltd.
Head Office, Mumbai

Contents

Chapter Contents
No
1 Introduction
2 Transportation
3 Product Loading
4 Product Receipt
5 Tank Lorry Monitoring
6 Vehicle Tracking System
7 Health, Safety & Environment
8 Malpractices/Adulteration/Irregularities/Penalties
9 Annexures

1.0 INTRODUCTION

1.1 Objective

To evolve Uniform Transport Discipline guidelines (TDG) for transportation of the bulk petroleum
products by Tank Truck/ Tank Lorry (TT) for:
a. Delivery of products to Retail Outlets and Direct Customers
 b. Stock Transfers from one location to another, i.e. Bridging
1.2 Purpose

The purpose of Transport Discipline Guidelines is to ensure that:

1.2.1 Petroleum products are filled in TT in accordance with Industry Quality Control Manuals.

1.2.2 Petroleum products are transported and delivered to dealers/ direct customers and
receiving locations in good condition confirming to the specifications.

1.2.3 A well defined system of checks exists .It various stages of handling of petroleum products,

1.3 Scope

1.3.1 The procedure/ code outlined in these guidelines are only the minimum required in order to
ensure quality and quantity of the petroleum products during receipt storage, transit and delivery.
Therefore. standard operating procedures with due regard to safety in handling of petroleum
products in general shall be followed as laid down in the respective safety and operations
guidelines manuals. It is expected that such standard procedures will be followed at all times in
addition to the instructions contained in the following chapters of these guidelines,

1.3.2 Changes, it any, in these guidelines will be advised through serially numbered amendments
and the amendment record (Annexure-I) of these guidelines shall be updated accordingly.

2.0 TRANSPORTATION

2.1 Transport Agreement

2.1.1 Industry Transport Discipline Guidelines shall be part of the transport agreer out

2.1.2 TT shall not be used for any product other than the designated petroleum products and will
operate only for the Oil Company with whom the agreement has been entered into.

2.1.3 Carrier shall ensure that TT is painted and maintained as per the colour scheme advised by
the Oil Company from time to time. Carrier shall also ensure that the name of Oil Company &
Logo is prominently displayed on the tank of TT and the name of the base location in the
information panel as per the directions of the Oil Company.

2.2 Fitness of rank Lorry

2.2.1 Carrier shall be responsible for providing a TT fit in all respects to carry petroleum products
and shall be transporting/ delivering the same in good condition as per specifications, to the
dealers/ direct customers( receiving locations and shall be held accountable for any malpractice/
adulteration en route.

2.2.2 TT shall be duly approved for its design/ fittings by Explosives Department Carrier shall be
responsible for ensuring that the integrity of the IT fittings is main aimed accordance with the
conditions laid down by the licensing authority at all times.

2.2.3 The original and a copy of the valid Exclusives License shall be submitted to the loading
location. Original certificate shall be returned to the Carrier after verification TT shall carry valid
Explosive License in original issued by Explosive Department at all times.
2.2.4 TT without valid Explosives License shall not be utilized, unless authorized by Explosives
Department to use the TT pending renewal.

2.2.5 Carrier shall ensure compliance to various statutory rules and regulations, including
provisions of Motor Vehicle Acts/ Motor Vehicle Rules in force at all times d ring the period of
agreement.

2.2.6 Carrier as per the design given by the Oil Company from time to time shall provide the
product sealing/ security locking/ electronic sealing arrangements security locking system) as
advised by Oil Camp my from time to time. The transporter to ensure that. the integrity of the
locking arrangements is maintained against any tampering ac all the times.

2.2.7 Carrier shall ensure that the Vehicle Mounted Unit (VMU) along with fittings & fixtures
installed on the TT for tracking the TT is kept always in working condition and its on/ off operation
is done according to the instructions given by the Oil
Company.

2.3 Calibration of Tank Lorry

2.3.1 The original and a copy of the valid calibration certificate shall be submittedd to the loading
location. Original certificate shall be returned to the Carrier after verification. TT shall carry valid
Calibration Certificate in original issued by Weights and Measure Department at all times.

2.3.2 TT shall be calibrated for single capacity in line with MV Act.

2.3.3 Carrier to provide manhole on tap of the tank in the geometrical centre of the compartment
of TT.

2.3.4 Carrier to provide dip hole/dip pipe in the geometrical center of the mani ale with manhole
fittings duly welded.

2.3.5 Datum Plate height should not be more than 10 mm from the bottom plate and should be
shown in the drawing.

2.3.6 Tampering with calibration of vehicle n any manner shall be constructed as a malpractice
and penal action will be taken against the carrier as outlined under clause no. 8. Further, alleged
product losses will be recovered from the carrier from the date of last calibration.

2.3.7 The calibration of the TT should be done at the calibration facility provided by the Oil
Company or as directed by the Oil Company. Carrier shall produce TT for verification checking
as and when required by the Oil Company

2.3.8 Carrier shall provide brass dip rods for each compartment or single brass ___ for all
compartments if specifically advised by the location ..

2.4 Tank lorry Accident

2.4.1 In case of IT accident, the crew shall inform the nearest Police Station loading location,
carrier, nearest Oil Company location and shall guard the vehicle as well as product.

2.4.2 Carrier shall arrange to transfer/ salvage the product in another fit TT immediately on receipt
of the information, after obtaining permission from the Oil Company arid various statutory
authorities. Proper safety precautions are to be followed transferring the product from the
damaged vehicle.
2.4.3 Carrier shall complete all the statutory formalities including lodging of FII & shall submit
accident report to the base location. Non lodging of FIR, not reporting the accident to the Oil
Company shall be construed as a malpractice & penal action will be taken against the carrier as
outlined under clause no. 8.

2.4.4 Spilled or transshipped product salvaged in TT/barrels shall be brought to the loading
location or the receiving location as advised by the Oil Company.

2.4.5 Draw three (six nos. in case of MS) composite samples (TMB), 1 liter each from each TT
compartment/barrel in the presence of carrying the salvaged product. Prepare sample tags as per
specimen given in annexure - II. Lockin/sealing of the TT/barrel and sample containers and
signing on the sample tags shall be done jointly by the location and carrier/TT crew. One set of
sample shall be sent to the Oil Company's lab for testing, one se to be given to carrier/TT crew
and one set to be retained at the location.

2.4.6 On receipt of test results from the lab, the carrier shall be suitably advised and action taken.

2.5 Other formalities

2.5.1 Carrier shall engage TT driver who has undergone training on transportation of hazardous
goods as stipulated under the Motor Vehicle Acts/Rules. The driving lincense of the driver should
be endorsed by Road Transport Authrorities to this effect.

2.5.2 Emergency Information Panels shall be correctly displayed on the TT as stipulated.

2.5.3 The TT registration number shall be painted on the fire extinguishers carried by the TT.

2.5.4 Carrier shall ensure that TT crew follows the specified route.

2.5.5 Carrier shall submit details of TT crew, antecedents of the TT crew obtained from local
Police & a copy of valid driving license of the driver to the base location and obtain entry pass
from the location.

2.5.6 Before embarking for the delivery it will be carrier's or his representative's responsibility to
ensure that TT crew has correct.

a. Challan/Invoice

b. TREM CARD and standing instructions.

3.0 Product Loading

3.1 Quality Control

3.1.1 Petroleum products shall be received, sored and delivered ex loading locations in
accordance with Industry Quality Control Manual.

3.1.2. Sales document: Dispatch density of the product at 15° C Celsius shall be indicated on
sales document.
b. Stock transfer document: Dispatch temperature & density of the product at 15" C shall be
indicated on stock transfer documents.

3.2 Sealing/Locking of Tank Lorry

3.2.1 Security locking of the n shall be done in accordance with the guidelines of the Oil
Company.

3.2.2 Carrier to ensure that the integrity of the security locking system is _ at all times.

3.2.3 Carrier shall ensure that the security locks are in place while effecting delivery and on its
return journey. Any act of tampering with the security locking system shall be construed as
malpractice and action shall be taken against, the carrier.

3.3 Log out and in time system

3.3.1 The departure time from the loading location shall be recorded on the invoice/stock transfer
document itself by the loading location and the dealer/ direct customer/ receiving location shall
record the arrival and departure time of the TT on the same document.

3.3.2 Carrier shall ensure that the trip time specified for the destination is strictly adhared to.

4.0 Product Receipt

The procedure outlined hereunder is applicable for the receipts of product at the supply locations,
dealers and direct customers.

Responsibility towards handling of product shall be in accordance with the marketing Discipline
Guidelines in force and Industry Quality Control Manual in force.

4.1 Actions to be taken on arrival of the TT

4.1.1 Recording of timings

Arrival & departure time of the TT shall be recorded in the delivery document. If bridging TT is
used for deliveries by receiving location, shall report back at the receiving location after
completion of delivery for monitoring of delivery time & handing over to banking instruments if
any.

4.1.2 Checking security locking systems

The security locking system shall be checked and if it is found O.K. proceed to 4.1.3. If found
tempered, then it will be construed as a malpractice and action shall be taken as mentioned in
4.2.

4.1.3 Density checking

The density of each compartment shall be checked. If the density variation at 5 degree Celsius in
within +/- 3 kg/m3 as compared to the challan density of the product then proceed to 4.1.4. If the
density variation at 15 degree Celsius is more than +/-/m3 or in case of doubt as to the quality of
product, then action shall be taken as mentioned in 4.2.
4.1.4 Retained Tank Lorry samples

The dealer/dealer's representatives shall draw 4x1 liters of MS and/or 2x1 liters of HSD bottom
samples (composite from all the compartments proportionate to the quantity of the product
received in each compartment after removing line contents) from the 'T seal & sample gag the
same before loading the TT. Before taking the samples, the empty sample containers should be
rinsed with the same product from the TT. These samples will be called as "Retained Tank Lorry
samples". The dealer should hand over, against payment, 2x1 liter or MS and/or 1 litter of HSD
samples to the TT driver/representative of the carrier for retention by the carrier. In addition, the
Carrier/TT driver will have to pay a deposit of Rs.300/- per sample container to the dealer. These
samples shall be retained in line with Marketing Discipline Guidelines in force. The carrier with
written mutual consent may leave 5 samples in safe custody of the dealer.

4.1.5 Market testing

The tank lorry may be subjected to the market test en route or at the dealer/direct customer
location premises. If the product carried through TT is found failing in the marker test then actions
shall be taken as mentioned in 4.2.

4.2 Procedure for dealing with the suspected irregularities

a. Inform sales officer/loading location.

b. The TT shall be detained.
c. The Sales officer/loading location officer shall draw the samples as mentioned in 4.3.
d. The sales officer/loading location officer, TT crew/carrier's representative &
consignee/consignee's representative, inspecting authority shall prepare a joint statement
mentioning the compartment wise observed densit/result of the marker test/status of the
security locking system and shall sign the statement.
e. In case of TT receipt at the location the loading location officer & TT /crew/ carrier's
representative shall prepare a joint statement mentioning the compartment wise
observed density/result of the market test/status of the security locking system and shall
sign the statement.
f. The TT, thereafter, shall be sealed by the sales officer/loading location officer and
detained at the place of the consignee's premises.
g. If the product passes in the lab test, the TT shall be decanted at the consignee's
premises. If the product fail in the lab test, then the TT shall be sent for the disposal of the
product as directed by the Oil Company.

4.3 Sampling procedure for suspected irregularities

4.3.1 At the dealer/Direct customer premises

The sales of officer/location officer shall draw eight nos. composite samples (TMB) in case of MS
(four in case of other products) of 1 liter from every TT compartment in the presence of carrier/TT
crew and consigned/consignee's representative. Prepare sample tags as per specimen given in
Annexure - D. Signing on the sample tags and sealing of the sample containers shall be done
jointly by the sales officer/loading location officer. TT crew/carrier's representative and
consignee/consignee's representative. One set of sample shall be sent to the Oil Company's lab
for testing, one set to be given to carrier/TT crew, _ given to consignee/consignee's
representative and one set to be retained by the sales officer/loading location.

4.3.2 Receipt at the locations

The location officer shall draw six nos. composite samples (TMB) in case of MS (three in case of
other products) of 1 liter each from every TT compartment in this presence of carrier/TT crew.
Prepare sample tags as per specimen given in Annexure-I. Signing on the sample tag and sealing
of the sample containers shall be done jointly by the loading location officer and TT crew/carrier's
representative. One set of sample shall be sent to the Oil Company's lab for testing and one set
to be given to carrier/TT crew and one set to be retained by the loading location.

4.4 Testing of samples at lab

The TT samples drawn by the sales officer/loading location officer at the consigner's premises
shall be tested in the lab. If the product passes in the lab test, the TT shall be decanted at the
consignee's premises. If the product fails in the lab test, then corresponding supply location
retention sample shall be tested. If the supply location retention sample passes in the lab test
then it would be construed as malpractice done by the carrier & action shall be taken as outlined
in clause no.8. If the supply location retention sample fails in the test then no action shall be taken
against the carrier. In any case of failure of the TT sample, the TT shall be sent for the disposal of
the product as directed by the Oil Company.

4.5 Testing of Retained Tank Lorry Samples at lab

4.51 Testing for specifications

If the product sample drawn from the retail out let is found failing in the test then the last
"Retained Tank Lorry samples" kept at the retail outlet shall be tested . If the "Retailed Tank Lorry
samples" is also failing in the test then the corresponding supply location sample will be tested. If
the location sample is passing in the test then it shall be construed as a malpractice done by the
carrier & action shall be taken as outlined hereunder on actions for malpractices/adulteration.

4.5.2 Testing for Marker

If the product sample drawn from the retail out let is found failing in the marker test then the last
"Retained Tank Lorry samples" kept at the retail outlet shall be tested for marker test. The marker
test of "Retained Tank Lorry samples" will be carried out after giving prior notice to the dealer &
the concerned carrier so that they can be present at the test venue if they so desire for witnessing
the testing. Field officer or the representative of the divisional office/regional office/territory office
will also be present & conduct/ witness the marker test. This team will submit it report in the
approved industry format. If the "Retired Tank Lorry samples" is also failing in the marker test then
the corresponding location sample will be tested. If the supply location sample is passing in the
marker test then it shall be construed as a malpractice done by the carrier & penal action would
be taken against the carrier as outlined under clause no.8.

5.0 Tank Truck/Tank Lorry Monitoring

5.1 Carrier having agreement with the Oil Company for a TT shall note enter into agreement with
other company for the same TT. carrier shall not enter into agreement with the Oil Company for
the blacklisted TT. If it is subsequent/proved that the car carrier has entered in to agreements with
other Oil Company for the same TT then it shall be construed as malpractice & penal action
would be take against the carrier as outlined under clause nO.8.

5.2 The Oil Company who has blacklisted TT/ carrier under their agreement shall circulate the list
of such TT/ carrier containing registration, engine and __ numbers to other oil companies.
5.3 Carrier shall not enter into agreement 'with the Oil Company by submitting forged
documents/false information.

5.4 Bridging TT, only after verifying the product acknowledgement for the previous trip, and
seeking clarification in the cases where trip time has exceeded, the TT will be be accepted for
loading.

5.5 In case a n has not reported for delivery at the receiving location after a responsible transit
time, carrier shall inform loading location and receiving location the reasons for delay and likely
date of reporting.

5.6 Bridging TT arranged by receiving locations shall be accepted only on the basis of indent slips
issued by receiving locations. The receiving location shall issue serially numbered indent slip
before it proceed; to the loading location for uplifting the product. In case of missing of such TT,
action as mentioned in item 5.5 above shall be taken.

In case a TT is not received at the receiving location, action shall be taken against the carrier as
outlined under clause no. 8.

6.0 Vehicle Tracking System

6.1 If VMU of the TT is not in working condition, it would be considered that the ____ is not fit for
loading.

6.2 Carrier or his representative shall inform the Oil Company within 30 minutes of stoppage of
VMU functioning.

6.3 Carrier shall strictly follow the specified route stipulated by the Oil Company. Any
unauthorized deviation from the specified route would be considered as a malpractice and action
will be taken against the carrier as outlined under clause no.8.

6.4 If it is observed that the VMU, its fittings or fixtures installed on the TT is damaged deliberated
/ by the carrier or his representative, then it would be construed as a malpractice and action will
be taken against the carrier as outlined under clause no. 8 Company's decision would be final in
determining as to whether it has been damaged deliberately or not.

6.5 TT should not be stopped enroute. Any unauthorized stoppage shall be constitued as a
malpractice and action will be taken against the carrier as outlined under clause no.8.

6.6 Carrier to ensure that the TT reaches the destination and delivers product to the consingee
within specified trip time. The TT not reaching the destination or unauthorized delays shall be
construed as a malpractice and action will be taken against the carrier as outlined under clause
no. 8.

6.7 Carrier shall ensure that TT does not exceed the speed limits prescribed by the concerned
authorities.

7.0 Health, Safety & Environment

7.1 All rules / regulations and statutory requirements shall be strictly followed by the carrier and
their works force i.e drivers / cleaners at the work place and on the road while transporting
petroleum products.
7.2 Driver and cleaner shall wear seal belt while driving vehicle on the road.

7.3 No TT shall be plied by the driver without cleaner, either on the road or at any work place.

7.4 The TT crew would not be permitted to enter the location premises without use of the
personal protective equipment i.e. safety shoes, helmet, spectacles (wherever necessary).

7.5 The crew of TT shall check safety fittings, fitness conditions of vehicles to pty on road before
the TT is brought for loading.

7.6 Safety procedures for unloading and loading of vehicles at the supply location as well as at
the destination i.e retail outlets, direct customer, supply location, etc. shall be strictly adhered to.

7.7 It shall be mandatory for all drivers to undergo refresher training course / training programs
organized by the location.

7.8 The TT should be driven only by persons having valid driving license issued as per MV Act.

7.9 TT crew to undergo routine health check once in every six months. Fitness Certificate to be
submitted to the loading location. TT crew need to be in sound health condition.

7.10 The carrier shall ensure that the TT crew are not in intoxicated state while on duty.

8.0 Adulteration / Malpractices / Irregularities / shall be immediately suspended by the location in

charge. However, an investigation shall be conducted as per the laid down procedure of the
company. On investigation, if the adulteration / malpractice / irregularities is established then
penal actions stipulated as under shall be taken.

8.1 Penalties in case of adulteration

In all cases of failure of the products / adulteration in TT, action against the Carrier shall be
initiated as under:

a. On the first incident (during the tenure of the contract) of adulteration, the particular TT shall be
blacklisted on Industry basis along with the TT crew. In case of second incident of adulteration,
the whole contract comprising of all the TTs belonging to the concerned carrier shall be
terminated and the concerned carrier & their all TTs shall be black listed on industry basis.

However, if the complicity of the carrier is detected in case of adulteration of the first TT, then the
whole contract comprising of all the TTs belonging in the concerned carrier shall be terminated
and the concerned carrier, their all TTs shall be black listed on industry basis.

b. Disposal of the contaminated product shall be done as directed by the company.

c. Cost of product as determined by the company shall be recovered from the carrier.

d. Incidental expenses and any other expenses sustained by the concerned Oil Company for
disposal of the contaminated product shall also be recovered from the transporter.

e. Transportation charges, octroi, tol taxes, other levies shall not be paid for the futile trip to the
dealer / direct customer or receiving location as well as for the subsequent trip for delivering the
adulterated / contaminated product to the concerned Oil Company's nominated location for
disposal of the product.

8.2 Penalties for malpractices and irregularities

8.2.1 Malpractices and irregularities will cover any of the following:

a. Tampering with standard fittings of TT including the sealing, security locks, security
locking system, calibration, Vehicle Mounted Unit or it fittings / fixtures.
b. Unauthorized deviation from specified route / unauthorized delay / unauthorized enroute
stoppage / not reaching destination / over speeding.
c. Unauthorized use of TT for products other than the petroleum products for which it has
been engaged.
d. For not wearing seat belt while driving on road, unauthorized stoppage enroute or driving
vehicle without cleaner/helper.
e. Entering into contract based on forged documents / false information.
f. Entering into an agreement for the same TT with other oil companies.
g. Pilferage / short delivery of product.
h. For non functioning of TT Fire Extinguisher.
i. Polluting environment due to product spillage from tilting or leaky vehicles on road, in
case of accident/unsafe driving.
j. Accident involving injury or damages to the facilities at the work place or accident
involving injury during transportation on the road.
k. Fata accident at the work place
l. Fata accident on the road.
m. Irregularities under W&M Act.
n. Not odging FIR with the Policy in case of accident, not informing / submitting accident
report to the Oil Company about the accident.
o. TT crew found in intoxicated state while on duty.
p. Any act of the carrier / carrier's representative that may be harmful to the good name /
image of the Oil Company, it's products or its services.

8.2.2 Penalties upon detection of malpractice / irregularities

The transporters shall attract penalties or the undesirable actions as given below and the TT
mentioned in the following instances shall be along with TT crew.

Sr. No. Type of malpractice / Number of malpractice / Irregularity

Irregularity First Second Third Fourth
8.2.2.1 Unauthorized deviation TT shall be TT shall be TT shall be
from the standard route, suspended suspended blacklisted
TT crew found in for one for one on Industry
intoxicated state while week. month. basis
on duty
8.2.2.2 No wearing seat belt TT shall be TT shall be TT shall be TT shall be
while driving on road, suspended suspended suspended blacklisted
unauthorized stoppage for one day. for one for one on Industry
enroute or driving week. month. basis
vehicle without
cleaner/helper
8.2.2.3 Non functioning of TT TT shall be TT shall be TT shall be
Fire Extinguisher suspended suspended blacklisted
for one for one on Industry
 week. month. basis
8.2.2.4 Polluting environment TT shall be TT shall be
due to product spillage suspended blacklisted
from titling or leaky for one on Industry
vehicles on road, in month. basis
case of accident /
unsafe driving
8.2.2.5 In case of accident TT shall be TT shall be TT shall be
involving injury or suspended suspended blacklisted
damages to faculties at for one for three on Industry
the work place or month. month. basis
accident involving injury
during transportation on
the road.
8.2.2.6 Fatal accident at the TT shall be
work place blacklisted
on Industry
basis
8.2.2.7 Fatal accident on the TT shall be The TT
road. suspended shall be
for six blacklisted
month. on Industry
basis.
8.2.2.8 Irregularities under The TT
W&M Act, Tampering shall be
with standard fittings of blacklisted
TT, Unauthorized use of on Industry
TT for products other basis
than the petroleum
products, entering into
an agreement for the
same TT with other oil
companies, Not lodging
FIR which the Police in
case of accident, not
informing / submitting
accident report to the
Oil Company about the
accident.
8.2.2.9 Pilferage/short delivery The TT The TT The carrier
of product. shall be shall be shall be
blacklisted blacklisted blacklisted
on Industry on Industry on Industry
basis basis basis.
8.2.2.10 Any act of the carrier / As decided
carrier's representative by the
that may be harmful to company.
the good name / image
of the Oil Company, its'
products or its services.

However, if the complicity of the carrier is detected in case of occurrence of any ___ above
malpractice/irregularity, then the whole contract comprising of all the TTs belonging to the
concerned carrier shall be terminated and the concerned carrier & their all TTs shall be black
listed on industry basis.

Annexure-I

Amendment Record

Amendment No. Date Page/s Date received Chapter Subject Signature

Annexure-II

Product:

Tank Lorry No:

Location:

Dealer/Direct Customer:

Document No.:

Date & Time of sampling:

Type of sample:

Compartment No:

Reasons for testing: